Signed: 2020 Volvo XC40 Inscription $389/mo $1500 DAS (Costco, First Responder + MSDS)

Signed Deals & Tips
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Not nearly as impressive as some of the XC60s and XC90s on here but just wanted to share in case anybody is looking for a 40. Seems like inventory is pretty scarce thanks to last month’s deals…

Year, Make, Model, and Trim: 2020 Volvo XC40 Inscription
MSRP: $45455
Sale Price: $39750 before 2500 in rebates
Monthly Payment: $356 + 9% tax = $389
Drive-Off Amount: $1500 + $4000 MSDS (max)
Months: 36
Annual Mileage: 12k
MF: .00091
Residual: 57%
Incentives: Costco $1250 + First Responder $1250
Region: PA
Leasehackr Score: 9.6
Leasehackr Calculator Link: leasehackr.com/calculator?make=Volvo&miles=12000&msd=10&msrp=45455&sales_price=39600&months=36&mf=.00091&dp=300&dealer_fee=482&acq_fee=995&taxed_inc=2500&untaxed_inc=0&rebate=0&resP=57&reg_fee=33&sales_tax=9&demo_mileage=0&memo=&monthlyTax_radio=true

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How much is the Volvo allowance/lease cash included in that discount?

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I think $1500 from what I saw on edmunds

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Gotcha. So $41250 selling price or 9.3% pre-incentive for anyone referencing this in the future.

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Not 100% sure, I just input the deal to compare to broker deals on here which don’t specify a lease cash rebate. Makes sense to just include it in their “selling price” since everybody gets the rebate but ¯_(ツ)_/¯

Probably worth pointing out if anybody is looking at this in the distant future that inventory is very scarce right now for XC40s especially in white. So incentives, dealer discounts, etc will probably change by then…by the way what is it like in the future? Do we have flying cars yet?

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I disagree. The lease cash varies by region. Pulling it out let’s you (and anyone referencing your deal) compare across regions.

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Yes, I agree, lease cash varies by region, so does dealer’s willingness to discount (EDIT: originally thought MF and RV varied by region as well - took that out). Just weird to focus on “pre-incentive discount” like its the only thing that matters. If Volvo has a $10,000 incentive next month, are people really going to harass salesmen for their 9.3% discount? What if Volvo drops the residual to 40%? Should somebody walk out of the dealership proud they were able to get a 15% discount on the sale price?

Again, just trying to provide a data point for people in the market for an XC40. Compared to brokers and other dealers, this was the best deal we could find in this region, at this point in time (and even better than a “monster deal” on a loaner advertised today).

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It’s the only way for the data to be useful for comparing across markets and it’s the only thing you really have control over in a negotiation. The rest are just the programs available from the bank… The pre-incentive discount is indicative of what dealers can be pressed to and still get a deal done. It’s literally the only unknown variable in the process.

And yes, if Volvo offered huge incentives, the goal would still be to target the same aggressive pre-incentive discount. Why would you give the dealer more money because the bank is offering you more incentives?

I appreciate you providing the data point, and I asked for the clarification so that data point is applicable to a larger group. I wasn’t criticizing your discount.

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No, Volvo’s MF/RV are National.
Pre-incentives discount is the only way to compare :apple: s to :apple: s
p.s. why so defensive? I don’t see anyone criticizing your deal

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Fair enough! Sorry if it came off as defensive, but most broker deals have a “selling price” that includes lease cash so I built the deal to compare to what’s offered in the marketplace…

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Got it, didn’t realize that! Edited my post.

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Brokers do this to show the lowest price to compete with each other and they also don’t know the final tax. When we share deals, we need to show the full breakdown and selling price before incentives because it is the best indicator of how good/bad the deal is.

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Absolutely. No one here would give up negotiating the dealer discount just because the OEM incentive increased.

Now indirectly that can affect the supply/demand balance but they should still be treated as separate parts of the hack.

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I agree with you here about supply/demand and that’s what I was trying to point out - if dealers have an insane amount of support from the manufacturer, but a limited amount of vehicles, they aren’t going to discount as much.